For goals and planned key actions for 2024 and beyond, please refer to the full Combined Annual Report 2023.
Borealis’ environmental management encompasses managing its energy consumption and efficiency, emissions to the environment (air and soil), its use and discharge of water, operational waste, and its overall environmental performance, ensuring compliance with all applicable laws and regulations.
The main driver for improving the Group’s environmental performance is reducing its CO2 emissions and energy consumption, which are among the most material impacts arising from its production processes. Emissions towards air, water use, waste and effluents also play a significant role in high-quality health, safety and environmental (HSE) management. They are therefore included in the Group’s HSE management processes and monitored as part of the environmental objectives of each location.
The Health, Safety, Environment and Quality (HSEQ) function is responsible for Group-level environmental management and reports to the Chief Executive Officer. HSEQ defines the Group’s standards and processes for its environmental management system.
Borealis also has several networks that bring together environmental experts from across the Group. The Environmental network holds regular meetings with the location environmental experts, to discuss and agree activities to continuously improve the environmental management system and performance. This includes drafting and reviewing new instructions, resolving issues identified by internal and external audits, and reviewing environmental performance, risks and opportunities.
The team also shares lessons learned and the improvement actions taken, as well as discussing authority permits for projects and legal compliance.
The HSE manager’s network defines the HSE strategy and improvement actions, and shares information such as lessons learned from incidents, best practice, and gap closing or audit actions. The network includes the Head of HSSE, local HSE managers and Group HSE experts. Borealis’ environmental experts also contribute to the Public Affairs team, to help formulate Borealis’ position on environmental issues.
Location HSE teams include environmental experts and report to the location leader. The local leadership meets each month to discuss HSE performance, including environmental KPIs and other indicators, as well as the performance of key projects. Every location has an HSE Forum, which consults with and informs employee representatives about the HSE management system, and encourages employee participation.
In addition, the Group has an OCS network, with regular meetings with the OCS specialists to discuss lessons learned, share improvements and drive performance.
The Group performs a detailed and systematic environmental risk and opportunity assessment for every plant, in all locations. These take place at least every three years or sooner if there have been major changes, near misses, incidents or accidents, or potential improvements have been identified. The risk assessments are based on an evaluation of the current legal framework and possible changes to it, any deviations from permit limits, and stakeholder input. Risks above a certain level are added to the Group risk management tool.
Based on these assessments, Borealis defines and documents HSE objectives and targets for each location. Clear responsibilities and timelines are agreed and reviewed at Group HSE level. The consolidated outcomes, including HSE performance, are reported to the Executive Board. Borealis also regularly engages with its stakeholders and assesses how significant environmental risks could affect its neighbors and other stakeholders in the community. The engagement approach for each aspect is then defined and can range from newsletters to roundtables, and oneon-one discussions with key stakeholders. Local senior managers deal with matters that can be managed locally and Borealis holds bi-monthly public affairs calls, to ensure they are well informed.
All Borealis production locations are part of an ISO 14001- compliant environmental management system. Borealis also uses an environmental data management system and reporting software. This ensures the Group has good control of this data, which flows from different sources, in multiple formats and at different times, and gives it the traceability and transparency required for reporting and auditing.
The Group is committed to complying with all relevant environmental laws, regulations, standards and other legal requirements, such as operational permits. This ensures it can continue to operate and protects it from fines, reputational damage and the costs of impact mitigation. The Group reviews all cases of non-compliance and takes action to prevent them from reoccurring.
Borealis is also committed to implementing the principles of Responsible Care®, the chemical industry’s voluntary commitment to continuous improvements in HSE performance, The Group uses the European Chemical Industry Council’s self-assessment web tool annually, to help it continually improve its approach to Responsible Care. The tool has numerous features, including benchmarking performance against peers and cross-referencing performance against the United Nations Sustainable Development Goals and other standards.
The WGC BREF (EU Best Available Techniques Reference on Common Waste Gas Treatment in the Chemical Sector) sets binding minimum performance standards for chemical plants, to prevent or minimize their impact on the environment through emissions to air.
Borealis has continued its intensive preparations for the introduction of the WGC BREF, which began in 2021 by building a full inventory of all emission points to air for each polyolefin plant, in accordance with requirement no. 2 (BAT 2 – Best Available Technology). In 2022, following the publication of the final draft of the WGC BREF, the Group used the inventories to conduct a full gap assessment against the 26 applicable BAT requirements.
After the publication of the final WGC BREF in December 2022, Borealis reviewed the gap assessment again. The Group then handed the assessment to the locations’ technical experts, to define the necessary work packages and projects to close the gaps.
Compliance with WBC BREF requires measurements of each identified emission point to air. These measurements are more complex than expected and finding companies able to perform them has also proved challenging.
Borealis’ sites in Austria are also legally required to inform local authorities of all gaps against a new BREF, within one year of its publication, to help the local authorities forecast permitting needs. This makes it more challenging for these sites to comply with the BREF, particularly if the required external service providers are not equipped for the task.
Borealis’ emissions to air result from its production processes and from combustion for energy generation. Such emissions can cause acidification, inhibit seed production, hinder fertilization or have an impact on human health. In addition to carbon dioxide, these emissions mainly comprise:
Borealis’ identifies its emissions to air using a mix of direct measurements (for example, in the stack) and calculations based on fuel consumption. The method depends on the complexity (for example, where several units use one stack) and the amount emitted. Emission factors provide a standardized method for calculating emissions, based on the type and amount of fuel used. For example, an emission factor may state that 1m3 of natural gas burned in a steam boiler produces x mg of NOx . In most cases, local or national authorities provide the emission factors, as they form part of Borealis’ permit or reporting requirements. In some cases, the factors are literature-based.
The Group follows all the legal requirements and stipulations in its permits, and also has its own standards for measuring and following up on key pollutants. The Group records any deviations from the norm in its incident management system, then investigates them and takes corrective actions. The approach taken depends on the emissions’ impact and their criticality. The Group prioritizes actions using the principles in its Group’s Risk Management Policy, in line with Borealis’ sustainability management approach. The Executive Board regularly discusses and addresses high-risk issues and proposals with significant potential for improvement.
Volatile Organic Compound Emissions
Borealis’ goal is to reduce its VOC emissions by quickly detecting and repairing leaks. In 2023, Borealis’ VOC emissions were 2,445 metric tons for Base Chemicals (BC) and Polyolefins (PO), compared to 2,608 metric tons in 2022. The decrease was mainly due to several turnarounds in the locations, resulting in production stopping for nearly two months.
Flaring
Flaring is a necessary safety measure used in the Group’s hydrocarbon and polyolefin plants, in which excess gases which cannot be recovered or recycled are safely burned. Flaring is responsible for a minor part of the Group’s overall CO2 emissions, as well as NOx emissions. Flaring also results in inefficient use of the Group’s resources, causes nuisance to Borealis’ neighbors, and has legal implications, such as permit stipulations or restrictions to emergency flaring.
The Group has set a target for zero non-emergency flaring by 2030. Turnarounds, regular maintenance of the plant’s assets and other internal and external factors influence the achievement of this target. In particular, flaring increases in years with more turnarounds, which are scheduled events during which a plant is temporarily taken out of operation to carry out important maintenance works and inspections. This inevitably leads to more flaring, as plants or lines must be safely shut down, emptied and ramped up again.
In 2022, the Group summarized best practices, refined definitions and uniform minimum requirements, for example for measurements, in a new document in the Borealis Management System (BMS). The Group also updated its project and risk database to track flaring projects and monitor progress towards the 2030 target. This has enabled the development of roadmaps for the individual locations and the Group in 2023. To further strengthen the approach, a new Energy and Flaring team led by a senior manager has been established, to bring together the technical and financial expertise to deliver on these roadmaps.
Flaring losses in 2023 were 32,239 metric tons for Base Chemicals and Polyolefins, compared to 39,955 metric tons in 2022. The effort to reduce upsets and implement flaring improvements continued, but several turnarounds led to significant start-up and shut-down flaring during 2023.
At 12,883 metric tons, non-emergency flaring losses for Base Chemicals and Polyolefins in 2023 were lower than in 2022 (14,113 metric tons) and below the target of 15,329 metric tons.
Key projects to reduce non-emergency flaring
In 2023, a turnaround in Schwechat, Austria, allowed the location to implement several projects that should reduce non-emergency flaring by 80%. The Group’s location in Porvoo, Finland, also completed a major project, using gas that would previously have been flared to produce much-needed steam for the site. This should reduce non-emergency flaring at the site by more than 90%. The full impact of these projects, which also reduce CO2 and NOx emissions and energy consumption, will be apparent from 2024 onwards.
Dust Emissions
All Borealis locations focus on reducing and preventing dust. The Group’s fertilizer locations, which were divested in 2023, were the main contributor. Borealis’ polyolefin production plants monitor dust emissions using spot samples, so the total volume of dust they produce is not measured.
Key project to reduce dust emissions
During the year, the Group’s Brazilian site replaced five dust collectors with state-of-the-art alternatives.
NOx Emissions
Borealis measures most of its NOx emissions and calculates the remainder using a standardized emission factor. Absolute NOx emissions in 2023 were 1,154 metric tons for Base Chemicals and Polyolefins, compared to 1,102 metric tons in 2022.
Key project to reduce NOx emissions
The Stenungsund (Sweden) location completed its steam boiler burner replacement program in 2023. The three steam boilers are now equipped with reliable and efficient low-NOx burners, which reduce NOx emissions by 20 metric tons a year, meet the site’s legal emission standards and reduce its environmental impact.
Sulphur Oxide (SOx) Emissions
Borealis does not produce SOx emissions, as it only uses gaseous fuels (natural gas and hydrocarbons) where no sulfur is present.
Borealis needs water to operate its plants and sites. Cooling is the largest use of water. Other uses include feeding boilers, cleaning, sanitation and firefighting.
The Group looks to minimize its water use, for example by recycling water in its production process. Environmental experts in each operation continuously monitor water use as part of the Group’s environmental monitoring program and to comply with the permits set by local authorities Borealis also carefully manages and treats the wastewater it discharges. Every location monitors its wastewater flows and contaminants to ensure that all parameters are within permitted levels and reports regularly to the relevant authorities.
In addition, Borealis uses tools such as the WWF (Worldwide Fund for Nature) water risk filter. This allows it to assess areas of concern, such as baseline water stress or interactions with neighbors and other stakeholders, so it can identify and prioritize improvement projects.
Water availability varies by location. A detailed water inventory was carried out in 2020 and 2021, which served as the basis for a risk assessment. This allowed the Group to understand its water usage, water emissions and water-related risks at each site and across the Group as a whole.
The results showed that four of the Group’s sites have critical water availability and are therefore subject to stringent water permits. Borealis prioritized these locations, which were the first to implement the Group’s new water management principles in 2022. The principles set minimum requirements for the locations to measure and report their water use, as well as how they are reducing their water withdrawal, for example by collecting and using rainwater, or through water saving, substitution, recycling and closed-loop systems.
In 2022, the Group also finalized water management plans for seven locations with baseline water stress. The plans cover all aspects of using water, from withdrawal to discharge, including the impact on the water bodies affected. The plans therefore lead to better data and follow-up of water flows, helping to identify projects to reuse water or use it more efficiently.
By the end of 2023, all of the Group’s locations had finalized water management plans. Newly acquired locations will have three years to comply with this requirement. The locations have started to define the actions required to improve their water management, and their targets and goals.
During 2024, the goal is to:
Finalized studies and projects will be presented and reviewed in the Group’s Water Team as well as the network of environmental experts, to ensure cross learning, application of lessons learned and a review of their effectiveness.
Water Withdrawal
Borealis withdraws the majority of the water it uses from surface water bodies, such as rivers and oceans. The remainder comes from groundwater, from another organization, municipal water supplies or other water utilities. Some locations also collect and use rainwater. Borealis’ water withdrawal in 2023 was 334 million m3 for Base Chemicals and Polyolefins, compared with 407 million m3 in 2022.
1) All water withdrawal is measured in accordance with local legal requirements. // 2) Due to the divestment, only the first half of the year to June 30, 2023 is reported. The figures are, therefore, not fully comparable.
1) Due to the divestment, only the first half of the year to June 30, 2023 is reported. The figures are, therefore, not fully comparable.
Wastewater Discharge
All Borealis plants are connected to wastewater treatment installations, consisting of internal treatment units, external plants or both. The volume and nature of the wastewater Borealis generates depend on the type of production at its locations. Borealis therefore installs water treatment techniques that are appropriate for each plant’s production process, which can include filtration, neutralization, osmosis, gravimetric and biological water treatment.
Treated water is then discharged primarily into a surface water body, such as an ocean or river. This body is also likely to be the water’s original source, which limits the environmental impact as much as possible.
1) No water bodies are affected by water discharge and/or run off. // 2) Due to the divestment, only the first half of the year to June 30, 2023 is reported. The figures are, therefore, not fully comparable.
Water consumption
Borealis does not consume water as such, since none of the withdrawn water is used in its products or converted in any other way. The withdrawn water is mostly discharged to the same water body it was taken from. While a small fraction of the water evaporates, the Group also discharges rainwater collected on site, resulting in very small or no net water consumption. In rare cases, Borealis may collect and discharge more rain than the water lost to evaporation, leading to a positive net consumption.
1) Fertilizers, Melamine and TEN is excluded from this data.
Emissions to water
Borealis’ operations use sea water for cooling purposes only. The discharged water does not therefore carry any pollution, with the only difference from the withdrawn water being a small increase in temperature.
Around two-thirds of the freshwater Borealis uses are treated at site and directly discharged. The remainder is sent to off-site communal or industrial wastewater treatment plants. The emission loads to water shown below only apply to freshwater direct discharge:
In 2023, a new, modern and robust industrial wastewater treatment plant began operation at the Stenungsund cracker plant in Sweden. It includes buffer storage, oil removal and off-gas treatment, in line with Best Available Techniques (BREF). The new plant has improved the work environment, reduced the risk of odors and complaints from neighbors, and results in low emissions to water.
In the catalyst production plant in Linz, Austria, improvements to the drainage system were implemented during a turnaround, so that rainwater no longer needs to be sent to the wastewater treatment plant.
Recycling and Reusing Water
Whenever possible, Borealis seeks to increase water-use efficiency by recovering its process water or reusing wastewater. For example, in some operations cooling towers use recycled water or rainwater. This is not possible in all locations, as it depends on permit stipulations and on the water body.
Borealis prioritizes reductions in energy consumption and CO2 emissions, as these are the most significant impacts of its production processes. As water consumption and energy use are closely linked, due to the energy recovery from cooling water, the Group may sometimes decide to increase its water withdrawal to recover more energy.
For many years, Borealis’ operations in Brazil have recycled all used water and utilized rainwater as make-up water. Several improvement projects were carried out in 2023 to improve both recycling and rainwater collection. This has led to a significant reduction in water withdrawal from the communal water supply.
Borealis generates waste during production and during short regular shutdowns and plant turnarounds. The most common types of waste produced in Borealis’ operations include non-recyclable polymers found in the polymer waste input to the Group’s recycling plants, as well as excavated soil, wastewater treatment sludge, solvents, mixed industrial waste and inert construction material. Borealis aims to minimize the production of waste where possible, but its main objective is to treat waste as a resource and to better handle end-of-life products by making them circular.
Borealis monitors waste production and implements control measures in all its operations, based on the requirements of regulations and ISO 14001 standards. The Group has waste management plans for each location, which are coordinated by local environmental experts. All locations follow the “4R” rules: reduce, reuse, recycle and recover.
All waste that leaves Borealis’ sites is collected by a certified third-party waste handling company, sorted and then brought to final treatment. Each Borealis site obtains treatment statements and bills, which include the collection and final treatment fees, and ensures the correct reporting of invoices and environmental data. The data in this report is accurate up to November 2023. Due to the early deadline for closing this Annual Report, December values have not been submitted fully by the waste handling companies. All locations have given the best possible estimate to allow a good representation of the Group’s waste generation. Waste generated upstream or downstream of the Group’s production is not included in its waste reporting.
In 2023, the Group changed its waste reporting to comply with the GRI 2021 requirements. Comparisons to previous years can therefore only be made on the total volume and at the hazardous/non-hazardous level.
The Group has implemented integrated manufacturing processes which recover as much coproduct as possible. If a coproduct cannot be reused and therefore becomes waste, the Group’s preference is to recycle it, taking into account relevant regulations and environmental considerations.
The Group only employs accredited contractors for handling its waste streams. By-products of polymer production, such as non-prime material or material from cleaning activities, are used to the extent possible in the Group’s recycling plants.
Non-recyclable waste has become one of the largest proportions of total waste for the Group and a main driver of the significant drop in the overall recycling percentage.
1) Environmental data might be subject to minor adjustments due to ongoing audits and missing third-party data at the time this report was finalized. // 2) Due to the divestment, Fertilizer, Melamine and TEN was no longer part of the change in waste reporting. Thus, figures are only available for total volume and at the hazardous/ non-hazardous level. As only the first half of the year to June 30, 2023 is reported, the figures are also not fully comparable.
Currently, this stream is used as secondary fuel in steel or cement production, but considerable research effort is going into finding a recycling solution for this stream as well.
Most of the Group’s locations are in Europe, where data collection and reporting are clearly defined by the Waste Framework Directive. Regular internal audits and external audits by local authorities validate these waste figures. In 2023, the Group’s total waste volume was 73,467 metric tons for Base Chemicals and Polyolefins, compared to 82,425 metric tons in 2022.
Approximately 59.4% of Base Chemicals and Polyolefins’ waste volume was diverted from disposal, 39.5% was directed to disposal, 0.5% was temporarily stored onsite and 0.6% was going outside the country.
The majority of Borealis’ hydrocarbons in use, such as ethane, naphtha, ethylene or propylene, are gaseous under ambient temperature and pressure. A leak in any equipment (for example a pipeline, flange or vessel) would therefore lead to an emission to air, rather than a spill. Borealis uses some liquid hydrocarbon raw materials, such as peroxides or oils for lubrication. These chemicals are stored and handled in designated areas with sealed surfaces and run-off protection. A liquid hydrocarbon spill to the environment is therefore highly unlikely and almost only possible during transport on site.
Pellet Spills
Plastic pellet loss is an important type of spill for a plastic raw material producer. Pellets released unintentionally during production, transportation, conversion and recycling can end up in nature, rivers and oceans. Preventing pellet spills is therefore a core responsibility for the industry.
Borealis is fully committed to zero pellet loss and has incorporated all elements of Operation Clean Sweep® (OCS), an international program to mitigate pellet loss, into its internal instructions, at both Group and local levels, as well as across its supply chain.
The Group’s target is to achieve full third-party OCS certification of all its sites in Europe by the end of 2024. Non-European sites and recycling sites are required to fully comply with the Group’s internal standard.
In 2022, eight locations underwent an intensive two-day audit by Group experts in OCS, to thoroughly check compliance with the internal OCS requirements and the OCS standard. The audit covered all areas of the standard, from risk assessment and management, to work instructions, housekeeping and the training programs for all employees. The audits showed continued growth in Borealis’ OCS maturity and progress towards compliance with the upcoming third-party certification standard. The main goal for 2023 was therefore to close all audit actions, to be fully compliant with Borealis’ internal requirements and standards and be ready for an external certification audit.
In 2023, the Group’s non-European and recycling sites also took major steps towards becoming compliant with the Group’s internal standards. The sites in the US and Brazil and the Group’s recycling sites are on track to be fully compliant by the end of 2024, which will be validated by an internal audit.
Lessons learned from audits, studies, improvement projects, housekeeping, inspections or incidents are shared and discussed in regular OCS network meetings that include all the OCS team leaders, as well as environmental experts from across the Group. The aim is to improve cross-learning, implement best practices and ensure consistent application of the Group’s standards. Unfortunately, despite these efforts the annual internal inspections found some pellets on the shores near the Group’s production facility in Porvoo, Finland. The authorities were informed, and cleaning was arranged immediately after the inspection. An internal task force has also been established to investigate the origin of the pellets. While the significant degradation of the pellets suggests they were released prior to the implementation of the OCS program, this is subject to confirmation by the final internal audit report. The European Commission is also addressing unintentional releases of microplastics. The current focus of the planned regulatory instruments is on tires, synthetic textiles and pellets. The primary impact of this regulatory measure on pellets is cost and administrative requirements for labeling, reporting and certification.
Borealis’ commitment to Zero Pellet Loss encompasses
As in 2023, Borealis will continue its studies and projects to be compliant with the WGC BREF, as discussed under Activities 2023 above.
A major focus area will be to close gaps against the water management plans and achieve a high level of compliance in all locations, as well as to finalize the implementation of water performance indicators to help drive Borealis’ water reduction ambition. The Group also aims to achieve full third-party OCS certification of all sites, to validate its work on reducing pellet loss.
1) Environmental data might be subject to minor adjustments due to ongoing audits and missing third-party data at the time this report was finalized. // 2) Due to the divestment, only the first half of the year to June 30, 2023 is reported. The figures are, therefore, not fully comparable. // 3) 2022 data of BC/PO included data for Rosier Group // 4) Severe upsets led to significant emergency flaring during shutdowns; in addition, there was a lack of recycling capacity.
Definitions
EU Emission Trading Scheme (ETS) CO2 emissions: All greenhouse gas emissions (GHG) as per the European ETS expressed in CO2 equivalents (since 2009 this indicator has replaced the reporting of direct carbon dioxide emissions).
Nitrous Oxide (N2O) emissions: Emissions of N2O (also known as laughing gas) are generated by the production of nitric acid in the fertilizer plants. N2O is a GHG with a global warming potential (GWP) 310 times higher than CO2.
Flaring losses: All streams sent to the flare, except streams that assure a constant flame (e.g. fuel gases to pilot burners, fuel gas purges to flare lines for safety reasons, steam, nitrogen).
Volatile Organic Compound (VOC) emissions: Emission of all organic compounds (from C1 to Cn) with a vapour pressure of 0.01 kilopascal (kPa) or more at either room temperature or at actual temperature when processed. The quantification is based on measurements and estimates. Total volatile organic carbon, expressed as C, includes methane.
Nitrogen Oxide (NOx) emissions: Emissions of all nitrogen oxides from all relevant sources, including flares. The emissions are quantified as NOx. When NOx measurements are not carried out, emission factors correlated to the fuel type and heating value are used.
Dust: Emission of dust from the production of fertilizers.
NH3 (Ammonia): Emissions of NH3 from fertilizer plants, loading stations and water treatment of fertilizer locations.
Energy consumption: Consumption of all energy vectors (i.e. fuels, electricity and steam). Electricity and steam are converted into primary energy with standard conversion factors of 40% (electricity) and 90% (steam).
Water consumption: Total amount of fresh water withdrawn from surface or groundwater sources for any type of usage (e.g. cooling, steam generation, cleaning, sanitation).
Waste generation: Generation of all waste at company locations during normal operation as well as during special projects. Any substance or object that is to be discarded is included in the definition of waste. Exceptions are atmospheric emissions, liquid effluents and by products with commercial value.
